Vale Indonesia breaks ground on $2.5 billion ferronickel smelter

Nickel miner PT Vale Indonesia broke ground on a 37.5 trillion rupiah ($2.48 billion) ferronickel smelter Sulawesi island on Friday, an Indonesian senior minister said. The Bahodopi project will produce ferronickel with 73,000 to 80,000 tonnes of nickel content per year, Vale has said.

The smelter, which would employ up to 15,000 workers during construction phase is a joint project between Vale and its partners, China’s Shandong Xinhai Technology Co. Ltd and a unit of China Baowu Steel Group Corp. Ltd.

In Pomalaa, another area of Sulawesi island, Vale and its partners are developing a plant to produce 120,000 tonnes per year of mixed hydroxide precipitate, a material extracted from nickel ore that is used in batteries for electric vehicles.

($1 = 15,130.0000 rupiah)

(By Bernadette Christina; Editing by Jason Neely)


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